The U.S. Federal Deposit Insurance Corporation (FDIC) has issued a request for information and comment on cryptocurrency assets in a bid to learn more about how institutions are currently using crypto assets and how they envisage using them in the future. The FDIC document invited interested parties to submit their comments until July 16, with FDIC preparing to review the submissions thereafter.
FDIC provides insurance for the U.S. financial system.
The FDIC is an independent body established by the U.S. Congress to provide insurance for the U.S. financial system. With a remit that covers regulation, resolution, and deposit insurance for banks and other institutions in the event of failure, FDIC plays a crucial role in ensuring trust and stability in the sector. The FDIC’s approach in dealing with crypto assets could set the direction of travel for the mainstream financial industries in the U.S., with the country’s banks and other large financial institutions all classed as insured depository institutions or IDIs.
FDIC sees banking taking an increasing interest in crypto assets.
In the request for information document, the FDIC said it noticed banks taking an increasing interest in crypto assets, both now and in the years to come. “One area of new technology and innovation surrounds the use of digital assets in financial markets and intermediation, as well as with settlement and payment systems. Banks are increasingly exploring several roles in the emerging digital asset ecosystem, such as being custodians, reserve holders, issuers, and exchange or redemption agents; performing node functions, and holding crypto assets issuers’ money deposits,” the FDIC noted. Cryptocurrencies have gained a lot of mainstream exposure in recent years. But being highly volatile in nature, cryptocurrencies are widely criticized.